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Project Risk Management Overview

This document discusses project risk management. It defines project risk as an uncertain event or condition that could positively or negatively impact project objectives. Project risk management is one of the ten knowledge areas that project managers must be competent in. The six key processes of project risk management are: planning risk management, risk identification, qualitative risk analysis, quantitative risk analysis, planning risk responses, and monitoring and controlling risks. Risks can be identified, quantified using a probability/impact matrix, responded to through avoidance, transfer, mitigation or acceptance, and continuously monitored throughout the project. Both threats and opportunities must be addressed.

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347 views13 pages

Project Risk Management Overview

This document discusses project risk management. It defines project risk as an uncertain event or condition that could positively or negatively impact project objectives. Project risk management is one of the ten knowledge areas that project managers must be competent in. The six key processes of project risk management are: planning risk management, risk identification, qualitative risk analysis, quantitative risk analysis, planning risk responses, and monitoring and controlling risks. Risks can be identified, quantified using a probability/impact matrix, responded to through avoidance, transfer, mitigation or acceptance, and continuously monitored throughout the project. Both threats and opportunities must be addressed.

Uploaded by

sachinrema
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© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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  • Introduction to Project Risk
  • Project Risk Management Overview
  • Risk Management Steps
  • Risk Management Process
  • Project Risk: Opportunity or Threat
  • Conclusion

PROJECT RISK

Presented By:Rishab singh


Rachit Goel
Priyanshi Sharma

Project risk
Project Risk is defined by PMI as an Uncertain

Event or condition that, if it occurs, has the


Positive or Negative Effect on the Project
Objectives.
Project Risk Management is an important aspect

of Project Management. Project Risk


Management is one of the Ten Knowledge areas
in which a Project Manager must be competent.

Project Risk Management includes 6


process groups
Planning Risk Management
Risk Identification
Performing Qualitative Risk Analysis
Performing Quantitative Risk Analysis
Planning Risk Responses
Monitoring and Controlling Risk

Project Risk Management


Managers can plan their strategy based on

four steps of risk management which prevails


in an organization. Following are the steps to
manage risks effectively in an organization:
Risk
Risk
Risk
Risk

Identification
Quantification
Response
Monitoring and Control

Risk Identification
Managers face many difficulties when it comes to
identifying and naming the risks that occur when
undertaking projects. These risks (Operational or
Business risks) could be resolved through structured
or unstructured brainstorming or strategies. It's
important to understand that risks pertaining to the
project can only be handled by the project manager
and other stakeholders of the project.

Risk Quantification
Risks can be evaluated based on quantity.
Project managers need to analyze the likely
chances of a risk occurring with the help of a
matrix.
4
Medium
Critical
3
M

Probability

2
1
Mediu
m

Low

High

3
Impact

Using the matrix, the project manager can


categorize the risk into four categories as Low,
Medium, High and Critical. The probability of
occurrence and the impact on the project are
the two parameters used for placing the risk in
the matrix categories. As an example, if a risk
occurrence is low (probability = 2) and it has
the highest impact (impact = 4), the risk can
be categorized as 'High'.

Risk Response
When it comes to risk management, it depends on the

project manager to choose strategies that will reduce


the risk to minimal. Project managers can choose
between the four risk response strategies, which are
outlined below.
Risks can be avoided
Pass on the risk
Take corrective measures to reduce the impact of risks
Acknowledge the risk

Risk Monitoring and Control


Risks can be monitored on a continuous basis to
check if any change is made. New risks can be
identified through the constant monitoring and
assessing mechanisms.

Risk Management
Process
Each person involved in the process of planning needs to

identify and understand the risks pertaining to the project.


Once the team members have given their list of risks, the

risks should be consolidated to a single list in order to


remove the duplications.
Assessing the probability and impact of the risks involved

with the help of a matrix.


Split the team into subgroups where each group will

identify the triggers that lead to project risks.

The teams need to come up with a

contingency plan whereby to


strategically eliminate the risks involved
or identified.
Plan the risk management process.

Each person involved in the project is


assigned a risk in which he/she looks
out for any triggers and then finds a
suitable solution for it.

Project Risk; an Opportunity or a


Threat?
Project risks contain two sides. It can be either

viewed as a negative element or a positive


element. Negative risks can be detrimental
factors that can haphazard situations for a
project.
Therefore, these should be curbed once
identified. On the other hand, positive risks can
bring about acknowledgements from both the
customer and the management. All the risks
need to be addressed by the project manager.

Thank you

PROJECT RISK Presented By:-
Project risk Project Risk is defined by PMI as ‘an Uncertain Event or condition that, if it occurs, has the Positive or Ne
Project Risk Management includes 6 process groups Planning Risk Management Risk Identification Performing Qualitative Ris
Project Risk Management Managers can plan their strategy based on four steps of risk management which prevails in an or
Risk Identification Managers face many difficulties when it comes to identifying and naming the risks that occur when
Risk Quantification Risks can be evaluated based on quantity. Project managers need to analyze the likely chances of a risk
Using the matrix, the project manager can categorize the risk into four categories as Low, Medium, High and Critical. The p
Risk Response When it comes to risk management, it depends on the project manager to choose strategies that w
Risk Monitoring and Control Risks can be monitored on a continuous basis to check if any change is made. New risks can be i
Risk Management Process Each person involved in the process of planning needs to identify and understand the risks pertain

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